Aggregation

DEFINITION of 'Aggregation'

1. Used in corporate financial planning, aggregation is a process whereby a number of a firm's smaller projects are combined and treated as an individual project.

2. Used in futures markets, aggregation is a principal involving the combination of all future positions owned or controlled by a single trader or group of traders.

BREAKING DOWN 'Aggregation'

1. This is a time saving accounting method for larger corporations. It helps consolidate resources and identify project costs efficiently.

2.The main purpose of aggregation is to ensure accurate reporting and compliance with regulations regarding the permitted levels of speculative limits for a single commodity.

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